Toyota announces first-ever loss

Toyota, the world's biggest car maker has announced its first-ever annual loss.

The company revealed a net loss of 436.94 billion yen (£2.9 billion) incurred for the year to 31 March, this compares starkly with a record profit for the same period in the previous year.

Toyota, along with many of its rivals, has cut production at its factories around the world, including its UK plant in Derbyshire.

The company's president, Katsuaki Watanabe, said the fall into loss was 'a consequence of the significant deterioration in vehicle sales, particularly in the US and Europe'.

Mr Watanabe was also not confident of a quick return to growth in the car manufacturing sector: 'It appears it will take some more time before the financial markets in the US and Europe normalise and the global economy recovers.'

Toyota also expected to make a net loss of 550bn yen (£3.7 billion) in the financial year ending March 2010.